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Florida Sales Tax Rules
12A-15.005
12A-15.004
12A-15.0035
12A-15.003
Rule 12AER18-07
12A-15.002
12A-15.001
12A-1.108
12A-1.001
12A-1.0011
12A-1.0015
12A-1.002
12A-1.003
12A-1.004
12A-1.005
12A-1.006
12A-1.007
12A-1.0071
12A-1.008
12A-1.009
12A-1.0091
12A-1.0092
12A-1.010
12A-1.011
12A-1.0115
12A-1.012
12A-1.014
12A-1.0141
12A-1.0142
12A-1.0143
12A-1.0144
12A-1.015
12A-1.016
12A-1.0161
12A-1.017
12A-1.018
12A-1.020
12A-1.021
12A-1.0215
12A-1.022
12A-1.023
12A-1.024
12A-1.025
12A-1.027
12A-1.029
12A-1.032
12A-1.033
12A-1.034
12A-1.035
12A-1.036
12A-1.037
12A-1.0371
12A-1.038
12A-1.039
12A-1.040
12A-1.041
12A-1.042
12A-1.043
12A-1.044
12A-1.045
12A-1.047
12A-1.048
12A-1.049
12A-1.051
12A-1.053
12A-1.055
12A-1.056
12A-1.057
12A-1.059
12A-1.060
12A-1.061
12A-1.0615
12A-1.062
12A-1.063
12A-1.064
12A-1.0641
12A-1.065
12A-1.066
12A-1.067
12A-1.068
12A-1.070
12A-1.071
12A-1.072
12A-1.073
12A-1.074
12A-1.075
12A-1.076
12A-1.077
12A-1.080
12A-1.081
12A-1.085
12A-1.087
12A-1.089
12A-1.090
12A-1.091
12A-1.0911
12A-1.094
12A-1.096
12A-1.097
12A-1.103
12A-1.104
12A-1.105
12A-1.107


100 West Cypress Creek Road, Suite 930

Fort Lauderdale, FL 33309

Office (954) 761-3700

Fax (954) 761-1004

8875 Hidden river PKWY, Suite 230

Tampa, FL 33637

Office (813) 775-2131

Fax (866) 388-3029

3500 Financial Plaza, Suite 330

Tallahassee, FL 32312

Office (850) 250-3830

Fax (866) 388-3029

Florida Sales Tax Rules

12A-1.032 Computers and Related Systems.

(1) Computer "hardware" is defined as the machine and all of its components. Computer "software" is the programming needed to make computers operate.

(2) The sale to a consumer of a computer and its related components is taxable when delivered to a customer in this state. The rental of a computer and its related components, including terminal equipment (hardware) which is physically located in this state, is taxable.

(3) When computers are accessed by customers through terminal devices which are connected to the computer, each customer is in effect using a portion of the computer. A customer is able to compile programs, provide a variety of computations, have computational results printed out on his terminal and keep data stored within the computer file for future use. This produces basically the same results as if the customer had processed the same data on his own computer; i.e., the customer performs the tasks of entering data into the computer and all processing is accomplished under his control. The charge for such use of the computer may include, among other things:

(a) Average amount of computer storage used.

(b) Computations performed by the computer.

(c) Time connected to the computer.

The above is sometimes referred to as "Time-Sharing Plan" and such charges are construed to be the rental of the computer, not service charges, and are taxable when the computer is physically located in this state. When the computer is located outside this state, the rental of the computer is not taxable.

(4) The charge which a computer technician makes for a customized software package which includes such items as instructional material, pre-punched cards or programmed tapes is construed to be a service charge and exempt. Retail sales of pre-packaged programs for use with audio/visual equipment or other computer equipment, where the programs are fully useable by the customer without modifications and the vendor does not perform a detailed analysis of the customer's requirements in selecting or preparing the programs, are taxable as sales of tangible personal property. However, where the vendor, at the customer's request, modifies or alters a pre-packaged program to the customer's specification and charges the customer for a single transaction, the charge is for a customized software package and is exempt as a service transaction.

(5) When a computer technician surveys a customer's needs and as a result makes recommendations which may include instructional material, diagrams and layouts, a software package, including pre-punched cards or programmed tapes, the charge made is construed to be for professional services and is exempt.

(6) When a Service Bureau performs a bookkeeping service for a client, such as keeping a set of records and the furnishing of financial statements, payrolls, tax reports, accounts receivable and accounts payable statements, etc., the charge therefor is for a professional service and is exempt. The various statements furnished are construed to be sales as inconsequential elements for which no separate charges are made.

(7) Blank key-punch cards and blank magnetic tapes are tangible personal property and are taxable when purchased by a customer who will use them in programming his own computer or when purchased by a computer technician or Service Bureau who uses them in developing a software package for a customer. The charge made for key-punching cards furnished by a customer is a service charge and is exempt.

Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(15), (16), 212.05(3), (4), 212.08(7)(v) FS. History–New 12-11-74, Amended 5-10-77, 6-29-80, Formerly 12A-1.32.

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